Payments
Payments made to foreign entities are normally accompanied by strict reporting and documentation requirements from sponsors. Additionally, how these entities are classified for national tax purposes can greatly affect the final amount of payments. Find resources below to help navigate issues that may emerge when working with international collaborators.
- Chart identifying various types of allowable payments to foreign nationals by visa type within the United States, as well as U.S. tax documents needed. Types of payments include payroll, contracts/sub-contracts, honorariums, scholarships/fellowships, prizes/awards, and travel reimbursements.
- The University of Pennsylvania has a very comprehensive Payment and Reimbursement Manual tailored for foreign non-affiliates.
In the United States, an honorarium may be paid to a foreign national for “usual academic activity or activities.” These activities include lecturing, teaching and sharing of knowledge or performance when the audience is composed of non-paying students and/or is open to the general public free of charge.
- Click here for guidance regarding issues that affect your institution’s ability to invite, host, and pay an honorarium to a foreign national.
- See also tips offered by the University of Washington for planning a successful visit by a foreign national who you wish to pay an honorarium.
Purchasing
The purchase of goods and services abroad should always comply with institutional policies, applicable governmental restrictions, and donor fund restrictions. When making purchases abroad, consider:
- How the goods or materials will be transported abroad or between foreign sites
- Methods of payment (both available and accepted)
- Currency conversion
- Foreign language transactions
- Export controls
- Allowable costs and vendors (many U.S. funding sources require that U.S. products be purchased/utilized)
- Inventory regulation compliance
- Necessary permits or licenses
- Shipping
- Value Added Tax (VAT)
Common forms of payment on international projects include accessing cash at a foreign site, field cash advances, international banking, personal or institutional credit card, and wire transfer. The USF Controller’s Office has this useful resource available when needing to reference payments to foreign vendors. The University of Washington also has a chart in its International Projects Start-Up Guide that may be useful when dealing with U.S. institutions and payments abroad.
Leasing, Purchasing, and Insuring Building Space
When determining what space at a foreign site will be needed for a project (office, lab, clinical facility and/or guest house for project staff), there are several issues to consider. In addition to budgeting for rent, it may be necessary to budget for other expenses associated with the property such as utilities, alterations, tenant improvements, cleaning fee, furniture, grounds maintenance, and security services/guard/night watch. Additionally, the following issues must be addressed:
- Compliance with university standards and local zoning laws and building codes (fire/safety)
- Mitigation of risk of seizure by the local government
- Engagement with local counsel, as needed
- Determination of the economic cost of the arrangement
- Determination of local property taxes
- Obtaining appropriate liability and property insurance coverage
Technology and Communications
Before your investigators engage in research internationally, ensure that all information technology needs are identified and addressed prior to departure. These should be considered in terms of the scale of operation, size of the project staff, and timeline of the project. Also, know the working environment prior to arrival in-country. For example, if access to electricity at the foreign site is not consistent, buy a power strip in-country. Know if additional precautions may be needed to signal the unexpected loss of power (e.g., an alarm on a piece of equipment) and anticipate if back-up equipment (like a generator) may be necessary.
Buying servers, workstations and printers in-country is recommended. This insures that devices are configured to meet local power standards and can make problem resolution and repairs less expensive and time consuming. Portable devices such as laptops, smartphones and software can be purchased either domestically or abroad, depending on need and pricing, but be aware of export controls and that any needed patches and applications are current before departing. Furthermore, local, in-country technical support is recommended if project personnel will be heavy users of computer and communications equipment. Local specialists are familiar with local conditions, understand the local technology and infrastructure, and have experience with local vendors. They can also often provide more timely and cost effective technical problem resolution.
Information on this page was largely sourced from the University of Washington’s International Projects Start-Up Guide. The University of Pennsylvania’s Global Support Services was also sourced.